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Buyers circle New Look

Prospective buyers are reportedly mulling bids to take over the debt pile at struggling retailer New Look, as the value of its bonds declines.

Several potential buyers are considering approaches to taking control of the chain through buying up debt, sources told The Mail on Sunday, given that the value of its debt has dropped in recent weeks.

These are understood to include hedge funds and vulture funds.

It emerged last week that New Look was thought to be mulling up to 60 shop closures, amounting to 10% of its UK estate, and that a company voluntary arrangement one of several options being discussed.

It is understood that Deloitte has been drafted in to advise the retailer on its options.

Earlier this month, some credit insurers for New Look suppliers withdrew their cover amid concerns over its poor performance.

Credit insurer Euler Hermes stopped cover on new shipments of goods to New Look, although it is still providing residual cover on existing orders.

New Look is majority-owned by South African listed investment firm Brait, which is partly owned by retail tycoon Christo Wiese.

Brait bought New Look for £1.9bn in 2015. In recent months, the group parachuted in former chairman Alistair McGeorge, who renegotiated the retail chain’s borrowings in 2013.

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